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M20 Junction M20 Junction 10a TR010006 4.2 Funding Statement APFP Regulation 5(2)(h) Revision B Planning Act 2008 Infrastructure Planning (Applications: Prescribed Forms and Procedure) Regulations 2009 Volume 4 May 2017 M20 Junction 10a TR010006 4.2 Funding Statement Volume 4 This document is issued for the party which commissioned it We accept no responsibility for the consequences of this and for specific purposes connected with the above-captioned document being relied upon by any other party, or being used project only. It should not be relied upon by any other party or for any other purpose, or containing any error or omission used for any other purpose. which is due to an error or omission in data supplied to us by other parties This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it. Date: May 2017 M20 Junction 10a Funding Statement TR010006 Issue and revision record Revision Date Description A July 2016 DCO Submission B May 2017 Revised edition to include up to date information. This document is issued for the party which commissioned it We accept no responsibility for the consequences of this and for specific purposes connected with the above-captioned document being relied upon by any other party, or being used project only. It should not be relied upon by any other party or for any other purpose, or containing any error or omission used for any other purpose. which is due to an error or omission in data supplied to us by other parties This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it. HA514442-MMGJV-GEN-SMW-RE-Z-4201 Revision B M20 Junction 10a Funding Statement TR010006 Content Chapter Title Page 1 Introduction 1 1.1 Purpose of document ________________________________________________________________ 1 1.2 Description of the Scheme ____________________________________________________________ 1 2 Capital Expenditure 2 2.1 Capital cost ________________________________________________________________________ 2 2.2 Land acquisition ____________________________________________________________________ 2 2.3 Preparation costs ___________________________________________________________________ 2 3 Sources of funding 3 3.2 Potential for blight ___________________________________________________________________ 4 HA514442-MMGJV-GEN-SMW-RE-Z-4201 Revision B M20 Junction 10a Funding Statement TR010006 1 Introduction 1.1 Purpose of document 1.1.1 This Funding Statement (“this Statement”) relates to an application made by Highways England (the "Applicant") to the Planning Inspectorate under the Planning Act 2008 (the "2008 Act") for a Development Consent Order ("DCO"). If made, the DCO would grant consent for the Applicant to undertake the M20 Junction 10a scheme (the "Scheme"). 1.1.2 This Statement has been prepared and submitted in compliance with Regulation 5(2)(h) of the Infrastructure Planning (Applications: Prescribed Forms and Procedure) Regulations 2009 (the "2009 Regulations") and in accordance with the Department for Communities and Local Government guidance 'Planning Act 2008: Guidance related to procedures for compulsory acquisition' (September 2013). 1.1.3 This Statement is required due to the fact that the DCO would authorise the compulsory acquisition of land, interests in land or rights over land. This leads to the requirement under Regulation 5(2)(h) for a statement indicating how the implementation of these powers in the DCO would be funded. 1.1.4 As this Statement is part of the application documents it should be read alongside, and is informed by, the other application documents; in particular, the Statement of Reasons (document reference 4.1), which is also included in the application to comply with the requirements of Regulation 5(2)(h). 1.2 Description of the Scheme 1.2.1 The Scheme comprises: · A new interchange junction 700 m east of junction 10 over the M20. · A new dual carriageway link road to the existing A2070 Southern Orbital Road (Bad Munstereifel Road). · A20 Hythe Road connection. · A new footway linking the A20 Hythe Road to the Church Road Footbridge across the A2070. · A new Kingsford Street footbridge across the M20 and a new Church Road footbridge. 1.2.2 A more detailed description of the Scheme can be found in Chapter 2 of the Environmental Statement, document reference 6.1. HA514442-MMGJV-GEN-SMW-RE-Z-4201 1 Revision B M20 Junction 10a Funding Statement TR010006 2 Capital Expenditure 2.1 Capital cost 2.1.1 The scheme has a current most-likely estimate of £104.4 million. This estimate includes all costs to deliver the Scheme from Options Stages through to the opening for traffic. It includes an allowance for compensation payments relating to the compulsory acquisition of land interests in, and rights over, land and the temporary possession and use of land. It also takes into account potential claims under Part 1 of the Land Compensation Act 1973, Section 10 of the Compulsory Purchase Act 1965 and Section 152(3) of the 2008 Act. 2.1.2 The estimate has been prepared in accordance with Highways England procedures and, in combination with the approved budget, provides sufficient cost certainty to enable the Applicant to confirm the viability of the Scheme. 2.2 Land acquisition 2.2.1 Highways England commenced statutory pre-application consultation on the Scheme on 14 January 2016 and has maintained engagement with land owners since this date to discuss the Scheme, agree access for surveys and discuss potential acquisition, where applicable. These discussions have informed the Scheme design as set out within the DCO application. 2.3 Preparation costs 2.3.1 Highways England has been, and will continue to be, responsible for all preparation costs associated with the Scheme. These may include items such as design costs, legal costs, land acquisition costs, advance payments to statutory undertakers and surveying costs. HA514442-MMGJV-GEN-SMW-RE-Z-4201 2 Revision B M20 Junction 10a Funding Statement TR010006 3 Sources of funding 3.1.1 Highways England is a government owned company and is responsible for operating, maintaining and improving the strategic road network in England. These responsibilities include the acquisition, management and disposal of land and property in relation to strategic road network improvement projects, together with the payment of compensation related to these activities. Highways England is responsible for delivering the major projects in the Roads Improvement Strategy. 3.1.2 The document 'Investing in Britain's Future' (extract at Appendix A), published by HM Treasury in June 2013, stated at Appendix A (Table A.6) that the Government was committed to funding the Scheme subject to finalisation of options and agreement being reached on developer contributions. 3.1.3 This commitment was confirmed in the December 2013 National Infrastructure Plan (extract at Appendix B) at page 107, re-stating that the Scheme would go ahead, subject to finalisation of options and developer agreement. 3.1.4 In July 2014 the South East Local Enterprise Partnership (“SELEP”) Growth Deal published that the Highways Agency will commit to deliver the major HA project at M20 J10a and provide funding for the total cost of the delivery of the scheme minus the Local Enterprise Partnership contribution (£35.7 million). 3.1.5 The Local Enterprise Partnership and partners, including Kent County Council and Ashford Borough Council (ABC), agreed to use pre-committed Local Growth Fund allocations and local developer contributions collected by ABC to invest £35.7 million in the major HA project at M20 Junction 10A. 3.1.6 The SELEP Accountability Board confirmed in February 2017 the award of £19.7m to the Scheme and, as stated above, £16m will be provided from local developer contributions. 3.1.7 The Department for Communities and Local Government (“DCLG”) has agreed to forward fund the £16m contribution from local developers subject to a funding agreement between the Homes and Communities Agency (“HCA”) and ABC, which will provide for the repayment of the £16m to the HCA from developer contributions over the period to 2030. This agreement has been signed by both parties and it is expected that DCLG will release funds across two financial years with a first contribution released by the end of November 2017 at the latest. HA514442-MMGJV-GEN-SMW-RE-Z-4201 3 Revision B M20 Junction 10a Funding Statement TR010006 3.1.8 This support from the Government is now a financial commitment to meet the partial costs of the Scheme. This commitment and partial funding for it was announced in the Government's Road Investment Strategy (extract at Appendix C). 3.1.9 The Scheme, including the compulsory acquisition of land interests, will therefore be partially funded by HM Treasury to the extent of £50 - £100m in line with the Road Investment Strategy (RIS) plan commitments (Appendices D). 3.1.10 3.2 Potential for blight 3.2.1 The term 'blight' refers to the reduction of economic activity or property values in a particular area resulting from expected or possible future development, or restriction of development. Where incidences of blight occur, blight notices may be served by those with a qualifying interest in land affected on the organisation(s) responsible for the planned development that gives rise to the blight. To date, no blight notices have been served
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